KONTAN.CO.ID - JAKARTA. PT Pertamina Tbk, Indonesia's state-owned oil and gas company, is reportedly purchasing crude oil from Russia. The decision is driven by the lower prices of Russian oil compared to the international market, making it an attractive option for Indonesia.

Despite the cost benefits, Pertamina's decision to import from Moscow could have political implications for Indonesia's relations with the Western world, particularly the United States.

Komaidi Notonegoro, an Energy Observer from the Reforminer Institute, suggests that the main issue surrounding the plan to purchase oil from Russia is its potential impact on Indonesia's diplomatic relations with the United States and the European Union.

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"By buying oil from Russia, it could be perceived as if Indonesia is supporting the invasion of Ukraine," he told KONTAN on Thursday (1/8/2024).

According to Komaidi, if this is seen as support for Russia's invasion of Ukraine, it could lead to a rejection of Indonesian goods in the global market.

"That's the main issue, not the oil specifications matching Pertamina's refinery conditions. There could be negative sentiment towards Indonesian products," he explained.

However, Komaidi says, these concerns should not be exaggerated. The purchase of Russian oil is purely a business matter unrelated to the Russia-Ukraine conflict.

"Pertamina buying Russian oil does not mean supporting Russia's invasion of Ukraine, we just need oil from cheaper sources," he said.

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So, what is the impact on Indonesia's diplomatic relations with the United States? Essentially, because the oil purchase is a business matter, the likelihood of causing tension with Western countries is not significant. "Currently, China and India are also buying oil from Russia," Komaidi noted.

He added that concerning the option of buying Russian oil, Pertamina could get a good price as it is promised a price cut of up to 30% from the international oil price.

"The oil specifications are no longer a problem, as Pertamina's refineries are equipped with technology capable of processing various types of crude oil," he elaborated.

Editor: Syamsul Azhar